Card Issuers Are Offering Less Expensive Methods to Access Your Credit Line. Disclosure of Advertisers Your needs are our top priority. Each time. We believe that every person should be able to make financial decisions without hesitation. Although our website does not feature every company or financial product available on the market We’re pleased of the advice we offer as well as the advice we provide and the tools we create are impartial, independent, straightforward — and completely free. So how do we earn money? Our partners compensate us. This can influence the products we review and write about (and where those products appear on the site), but it does not affect our recommendations or advice, which are grounded in hundreds of hours of study. Our partners do not promise us favorable review of their services or products. . Card Issuers Are Offering Cheaper ways to access your credit Line Costly cash advances are no longer the sole option for tapping into your credit line. But there are drawbacks to be aware of. By Melissa Lambarena Lead Writer | Credit cards credit cards, debt Melissa Lambarena is a lead writer for the credit card team at NerdWallet. She has been a passionate writer covering credit card related topics for more than six years. Her previous experiences include nine years of experience as the creator of content for various websites and magazines. With her efforts, she aims to help readers extract the value of credit cards for financial goals such as increasing their budget, establishing credit, taking trips to dream destinations and paying off debt. She explores these topics along with others in the Millennial Money column featured in The Associated Press. Her writing has also been featured on The New York Times, Chicago Tribune, The Washington Post, USA Today and Yahoo Finance, among others. Melissa has a bachelor’s level degree in sociology from University of California, Los Angeles. University of California, Los Angeles. Dec 1, 2022 Edited by Kenley Young as the editor assigned to NerdWallet. Credit scores, credit cards Kenley Young oversees the daily credit cards coverage for NerdWallet. Before that, he was a homepage editor and digital content producer at Fox Sports, and before being a front-page editor at Yahoo. He has years of experience in both digital and print media, including periods as a copy desk chief as well as a wire editor as well as an editor of the metro of the McClatchy newspapers chain. Email:

. Many or all of the products we feature are made by our partners who compensate us. This impacts the types of products we write about and where and how the product appears on the page. However, this doesn’t affect our opinions. Our opinions are our own. Here is a list of and . Credit cards can be a great option to pay for something, but historically they’ve lacked flexible or inexpensive ways to access your credit line beyond making purchases. The traditional alternatives to tapping your credit line for money has been an, which is usually with a high interest rate and expensive costs. If your finances are in a bad state, this kind of expensive short-term loan could cause more problems. However, in recent times, more practical and less expensive options are popping up. In recent times, each of the major credit card companies and startups have launched new products and features that make it easier -and more affordable to use your credit line to reimburse friends, pay off big purchases at lower rates, cover a bill you can’t normally pay using a credit card, or get cash deposited into the bank account of your choice. Read more: Easier peer-to-peer transactions Never carry cash nowadays? Perhaps you’re only a couple of dollars short of your portion of the check at dinner? It’s possible to consider a feature like American Express’s launch in November 2020 and accessible to qualifying cards through AmEx’s mobile apps. The “Send” part of this function lets you use your AmEx card to pay other people through or , however, without having to pay the transaction costs that normally be charged to credit cards used like this on those platforms -generally, around 3 percent. The terms apply, with limitations on the amount you can make and the transactions won’t be eligible for rewards. But it can be an ideal option for sharing the cost of food, gifts or other items. “We’ve certainly seen a lot of sustained customer engagement,” said Stephanie Schultz Vice president and head of emerging strategic partnerships of American Express. “One of the more common categories we’ve seen been giving gifts, particularly over the holidays.” Things to remember: As with any charge to your credit card, you’ll be required to settle a “Send” transaction at the time of your due date to avoid accruing the interest. Conditions apply. More information: Flexible financing and installment-loan options What if you’re looking to finance a much larger expense? Some companies and card issuers have created the possibility of turning your credit line into an installment loan. Chase and Citi are two examples. They provide and , respectively offer a selection of cardholders. They function similar to a personal loan at a financial institution with money deposited straight into the bank account. You’ll be given a specific period of time to pay back the loan with a fixed monthly payment. You’ll be charged interest however, it could be at a rate that’s lower than your credit card’s ongoing APR. This makes it possible to take out a loan without having to fill out an application, which means no new credit check on your report. “With My Chase Loan, our customers have reported that the ability to take an loan with no application or credit check, as well as no needing to open a brand new bank account, and at an APR that is lower than their card’s standard APR, is appealing,” said a Chase spokesperson in an email. “They also like the transparency that comes with knowing the monthly repayment amount and loan duration in advance, as well as reassurance that there is no origination or early payoff cost.” If you’re looking to make a payment on a major purchase, this choice could be a better deal than charging it directly to your card . In addition, it’s cheaper than cash advances. Keep in mind This is because these programs are targeted, so they may not be accessible to everyone in all instances. include the potential impact on the utilization of your credit (and your credit scores), plus the overall price of the loan even with an interest rate that is lower. The loan amount you are able to request is based on your available credit limit and creditworthiness, which is why it’s worth checking personal loan rates from other institutions. More A Nerdy Tip If looking to split your individual purchase with a credit card into smaller pieces, you could instead look into the Chase My Chase Plan option or Citi’s Flex Pay feature. Similar to that to that, the Mastercard payment platform is currently launching a service called . Terms and charges could apply, however these options make monthly payments more reliable. AmEx also has a feature, for which the fee is fixed for each month and you’ll be aware of the amount you’ll be charged each month. Conditions apply. >> MORE: Options from startupstoo. startup company Upgrade provides an innovative as well as flexible product — the — that blends elements of loans and credit cards. loans. When you use it as a credit card the balances remaining are converted to installment loans. When you use it as a personal loan, you can get the funds deposited into the bank account of your choice. In either case you’ll have the option of repaying the amount by equal installments at a fixed interest rate within a specific timeframe. Things to remember that the APR you’re eligible for can vary depending on the loan, and just like other installment loan options you should check rates with other lenders too. >> MORE Third-party options: If the credit card company you’re using doesn’t offer as much flexibility in access to your credit line, third-party services could be a viable alternative. For example paying a fee permits you to use your credit cards to pay for bills you can’t usually pay through credit card, such as rent, mortgage, day care, utilities and much more. The card is charged through Plastiq to the amount of the bill (plus the 2.9% processing fee) Then, Plastiq makes payment to the person on your behalf. This can be a valuable option if, for instance, a bill is due today but you need some breathing room in the meantime while you wait for your paycheck to arrive. In contrast to other options, you’ll be able to earn rewards on credit cards, which could offset some of the processing fees. In the past, Berna Anat, a San Francisco resident and content creator, used this option to pay off expenses and accumulate points for trips for a trip to New Zealand and other destinations. “I never charge more than as much as the cash I already had saved for that month,” She said. What to keep in mind: While an 2.9% processing fee can be cheaper than cash advances, it can still pack a big bite, especially for larger transactions. If you aren’t able to pay off the charge completely by your credit card’s due date, you’ll incur interest at your card’s ongoing APR, which is quite costly. Also, some credit cards aren’t compatible with bill payment providers from third-party companies. Before using one, review the card , or ask the issuer about how (or what) your payment is processed. It may be considered a cash advance for instance, rather than being a purchase. >> MORE: About The author Melissa Lambarena is a credit cards author at NerdWallet. She has had her work highlighted by The Associated Press, New York Times, Washington Post and USA Today. In a similar vein… Discover the perfect credit card for you. Whether you want to pay lower interest or earn higher reward points, the right card is out there. Simply answer a few inquiries and we’ll be able to narrow down the results for the right card for. Get even deeper into credit Cards Discover more intelligent money moves delivered directly to your inbox. Sign-up and we’ll email you Nerdy articles about the financial topics that are important to you as well as other methods to help you make the most out of your money. Make the best money-making decisions

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